PACRA Maintains Ratings for Bank of Punjab’s Additional Tier 1 Capital

Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term AA- rating for The Bank of Punjab’s Additional Tier 1 Capital TFC, amounting to PKR 3.95 billion, with a stable outlook. The affirmation reflects the bank’s solid parentage and strategic positioning in the market, bolstered by a robust deposit base and significant investments in government securities.

According to a statement by The Pakistan Credit Rating Agency Limited, the bank’s deposit base reached PKR 1,574 billion by September 2024, showing a steady increase from PKR 1,521 billion at the end of December 2023. Despite a decline in gross advances by 20% during the same period, the bank’s capital adequacy ratio improved to 20.2% by September 2024, supported by the issuance of Additional Tier-1 and Tier-II bonds.

The bank has reported a noticeable growth in its profit margins. Profit Before Tax increased by 15% in CY23, driven by a significant rise in non-markup income. The Profit After Tax for the first nine months of CY24 stood at PKR 14.1 billion, a substantial increase from PKR 8.9 billion in the same period the previous year.

Under experienced leadership, the bank is actively pursuing strategic initiatives aimed at diversifying revenue streams. This includes focusing on small and medium-sized enterprises, the retail segment, and trade finance, alongside exploring opportunities to expand its global presence through offshore entities.

As the bank continues to navigate through emerging challenges, its strong investment portfolio and improved profitability position it well for future growth.

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